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3 great stocks to buy in 2015: Slater & Gordon Limited, Credit Corp Group Limited and Challenger Ltd

Do you like buying cheap stocks and are you willing to let your money work for you over many years?

If so, keep reading…

Because Slater & Gordon Limited (ASX: SGH), Credit Corp Group Limited (ASX: CCP) and Challenger Ltd (ASX: CGF) look cheap, have promising long-term growth prospects and are very well run.

Here’s what you need to know…

Slater & Gordon is Australia’s leading personal injury law firm (with around 25% market share) but is also growing quickly in the larger UK market, where its share is estimated at just 5%. The targeted market is five times larger than ours and highly fragmented. With expanding margins and growth opportunities locally and aboard, now could be a great time to buy shares in this top growth stock.

Credit Corp is a leading receivables management company whose shares trade cheap and offer investors a solid 4.6% fully franked dividend. Since falling hard in the depths of the GFC, the company has bounced back, climbing 235%. The company boasts some useful countercyclical features and offers growth potential in the form of an expanding short-term consumer loan book and entrance into the US market.

Finally Challenger is Australia’s largest provider of annuities to retirees. An annuity offers guaranteed returns to investors for an upfront lump sum payment, which is invested by Challenger out over many years. The company is uniquely placed to benefit from both a bulging superannuation pool and the retirement of the baby boomer population. It also has a growing funds management division.

Despite the obvious long-term tailwinds, Challenger shares trade cheap and offer a handsome 4.7% fully franked dividend. Due to the nature of Challenger’s business, it is heavily regulated. Whilst this can be troublesome at times, it provides some certainty for shareholders and clients, whilst also creating barriers to entry.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

*Returns as of June 30th

Motley Fool Contributor Owen Raszkiewicz owns shares of Slater & Gordon. You can follow Owen on Twitter @ASXinvest.

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